MARKETING

Business to Business Marketing
Definition
“Business Marketing is the practice of individuals,
or organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as

components in products or services they offer, or use
them to support their operations”

Industrial Vs Consumer Marketing
Areas of Difference Market Characteristics Business Market
Geographically Concentrated Relatively Fewer Buyer

Consumer Market
Geographically Disbursed Mass Market

Product Characteristic

Technical Complex Customized

Standardize

Service Characteristic

Service , timely Availability extremely Important

Somewhat Important

Buying Behavior

Involvement of Various functional area from both the ends Purchase Decisions are performance based and rational Technical Expertise

Involvement of family members

Purchase decisions are mostly based on Physiological /social/psychological needs Relatively less technical expertise is required

Industrial Vs Consumer Marketing
Areas of Difference Channel Characteristic Industrial Market
More Direct Fewer Intermediaries

Consumer Market
Indirect Multiple layer of Intermediaries

Promotional Characteristic

Emphasis on Personal Selling

Emphasis on Mass Media (Advertising)

Price Characteristic

Competitive Bidding and Negotiated Prices
List Price for Standard Products

List Price or MRP

TYPES OF INDUSTRIAL CUSTOMERS
• • • • COMMERCIAL ENTERPRISES GOVERNMENT CUSTOMERS INSTITUTIONAL CUSTOMERS COOPERATIVE SOCIETIES

BUYPHASES IN THE INDUSTRIAL BUYING-DECISION PROCESS 1. Recognition of a problem Determination of the appliccation & qty. 4. 6. 8. 7. 2. 3. 5. Development of specifications Search for & qualifications of potential suppliers Obtaining & analysing supplier proposals Evaluation of proposals & selection of suppliers Selection of an order routine Performance feedback & post-purchase evaluation .

SWOT .

STRENGTHS • More than 70% turn over is from top 4 Companies. • Well established brand names and distribution network by Existing players. • Tyre and tubes Import/Export Freely allowed . • High Capital Expenditure creates barriers to new entrants.

. • Tyre industry industry is unable to pass on majority of price hike to end consumer due to high competitive pressure. any Sharpe rise can impact profitability significantly.WEAKNESS • Fortune depends on process of key raw material such as rubber and crude oil.

OPPORTUNITY • Strong Growth • Infrastructure Development especially roads • Shift to redialization can increase profitability in future .

. • Imported tyres from china is a challenge for Indian manufacturers.THREATS • Prices of raw material • Prices of Diesel and Petrol are high.

ENTRY BARRIERS-HIGH • Large Capital Required • High Raw material cost • High risk .

balance by rubber based non-tyre industries. . • Number of supplier is less. 70% of Tyre Industry Turnover.BARGAINING POWER OF SUPPLIERHIGH • Raw materials cost accounts for approx. • 63% of total Natural Rubber consumption is by the Tyre Sector.

.THREAT OF SUBSTITUTE-MEDIUM • Imports from chinese market. • Entry of international players.

Caterpillar Hero Honda Apollo Tata Motors FIAT M&M Maruti Suzuki Hyundai Audi MRF Tata Motors Honda M&M Maruti Suzuki .BARGAINING POWER OF THE BUYER-HIGH CEAT Tata Motors Ashok Leyland M&M Swaraj Mazda..

INTER FIRM RIVALRY-HIGH .

STPD .

Light Commercial Vehicle .Tyre Market Segmentation Indian Tyre Industry Commercial Vehicles Passenger Vehicles Others MHCV HCV LCV Cars Motorcycles Scooters Farm OTR Industrial Vehicles MHCV HCV LCV OTR .Heavy Commercial Vehicle .Off the Road .Medium Heavy Commercial Vehicles .

M1 (Cars) P1 P2 P3 Touring Tyres Sport Tyres Economy Tyres M2 (Trucks) Economy Tyres Mileage Tyres M3 (2-wheelers) High Grip Tyres Touring Tyres Endurance Tyres Best Fit Tyres .Market Targeting MRF : Compete Market Coverage o MRF holds a diversified portfolio of products spanning the entire tyre market.

M1 (Cars) P1 Touring Tyres M2 (Trucks) M3 (2-wheelers) P2 P3 Sport Tyres Economy Tyres .Bridgestone – Market Specialization • Bridgestone India has focused on the Passenger Car Segment exclusively as it offers only radial tyres.

• Punch line: Passion for Excellence. Top Quality & International standard. • This communication is substantiated by association to F1 racing .• High Performance.

Sporty & Home-Grown • Punch line: Tyres with Muscle • Sponsors Cricket & Rally racing to position as high endurance and sporty . Strength.Positioning • Superior Endurance.

companies do try to differentiate themselves by outdoing one another insome (POP): Points of Parity such Quality Safety Durability Grip Economy etc. (POD):-Point Of Differentiation High Endurance Tyres High Performance Tyres . there is not much difference in products offered by competing tyre manufacturer.Differentiation • Being a homogeneous product. However.

4P’s .

.

Product .

Grip. Durability. Concerning to breaking.Product • Core Tyre a customer vehicle can run on • Basic Tyre that fits customer vehicle • Expected Quality. Safety. Mileage. Ride Comfort .

Augmented Benefits Bridgestone Value Proposition Quality.Smooth and Quite Value for Money Endurance.International Standards Comfort.Durability on tough Indian roads .International Standards MRF Value Proposition Quality and Endurance Quality. Comfort and Value for Money Quality.

Product Mix Dimensions .

Passenger Cars ZVTV(7) ZLO(4) VTM(1) SLM(2) Two Wheelers Zapper FV(1) Zapper FM(1) Zapper FS(3) Rib Plus(6) Trucks-Buses Super Miller99(4) Steel Muscle SIT4(2) Farm Services Shakti Super-(12) Shakti Life(12) LCV Superlug 50 plus-R(1) Superlug 505(2) Supermiler 99 (3) SCV Steel Master(1) Steel MuscleR(1) Zigma(2) Savari Trek(1) Steel Muscle (3) Rib(7) The Lug Plus(4) Trailer707(2) Supermiler 95 (1) Power Tiller(1) Fork Lift Solid(10) Superlug(1) SuperlugR(1) ZQT(8) ZTX(5) ZSLK(4) ZEL(3) ZVRL(2) Meteor(2) Zapper YM(1) Zapper Y(8) Zapper Q(8) Zapper Vyde(3) Muscle rokx(4) Muscle rok(1) M-77(5) Superlug 50 plus R(1) Superlug 555(1) Savari Lug(1) Savari (1) Pneumatic(5 Steel ) Master (1) .

Passenger Cars ZV2K(20) Two Wheelers Zapper C(5) Trucks-Buses Superlug 50 plus (2) Superlug 50(3) Farm Service LCV SCV ZVT(20) ZCC(2) ZGT(2) ZGP(5) ZVTS(40) NDMS(10) Safari(10) Twintread(2) Moto-D(4) Moto-C(3) Nylogrip .ST Plus(1) Nylogrip – Plus(7) Nylogrip – Plus FE(1) Zapper D (1) Nylogrip – Plus(2) Nylogrip – Scooter(2) .

Passenger Cars Big Rover (2) Estate(1) Swgg(4) SM-12(4) Two Wheelers Truck-Buses Farm Services LCV Legend(3) Product Mix=304 .

Place First Identify the Customer Base • Replacement • OEM • Exports .

Bulk Quantity .Sometimes may use C & F agents .Distribution Channels (Direct and Indirect) • Direct Channels OEM Direct Supply to Automobile Manufacturer .Cater Just In Time for OEM .Exclusive Channel .

Indirect Channel One or more intermediaries between tyre manufacturer and final consumer .

Channel Length No of intermediaries between Manufacturer and end user Channel Management •Selection of Dealer •Training and motivating Channel Members •Effective Consumer Response Practice .

More concern about functionality • Bridgestone Uses Price.Tyre market not very Price sensitive .Pricing Highly Raw Material Intensive Industry • Mark Up pricing strategy is used .Less in MRF compared to Bridgestone • .Quality inference • Dealer Discounts and allowances .

Promotion • Huge Investment in Print . TV and outdoor Media by MRF • Slogan “Tyres with Muscles” • Celebrity Endorsement .

The blimp is 19 metres long. 400 cubic metres of Helium. maximum height of 1000 feet .The official blimp sponsor of IPL 2010 the MRF blimp at the Chinnaswamy Stadium in Bangalore.

13 billion US $ in FY 2011 12 .TATA STEEL • Amoung top 10 global steel companies • Annual steel capacity over 28 mtpa • Oprations in 26 countries and commertial presence in more than 50 countries • Turnover of 26.

Customer Value Management CVM • • • • Shortlisting of customers Set up cross functional team Joint team formation Study the entire value chain of oprations .

Customer Value Management CVM • Key performance indices • Brainstorming • Shortlisting of ideas Hygiene ideas Oprational improvement ideas Joint study ideas • Further evaluation .

CVM Benefits • • • • Saving cost across value chain of oprations Deep insight and appreciation of customer‟s problems Changed focus Strong bonding with customers .

Industry Analysis • Industry: Internet services and technologies • Major Sectors: – Advertising – Search engine – Cloud computing • Primary Revenue Source: Advertising (97%) • Constantly evolving Industry .

Google Product Offerings .

Most popular Google sites .

storage and retrieval of data/information across a wide (online) platform. customizable. other main areas is software licencing to businesses .Marketing Strategy • USP: Google facilitate the efficient organisation. The result is a convenient. • Profit formula: Mostly dependent on advertising (97%). co-creation approach to media sharing for the use of individuals and organisations alike.

Positioning Analysis • The Google company is positioned as: – Solution-centric – Innovative – Socially responsible – Vast networks. deep knowledge • Google Advertising network – Advertiser-friendly – Traceable metrics – Google Analytics – Credible. host & viewer) . tasteful advertising – Rewarding for all parties (advertiser.

Europe.Segmentation & Targeting • The Google company: – Offers products that generally appeal to a mass market – Doesn‟t matter what you are using the web for • Search is the common denominator for everyone. Russia. a „home-base‟ from which to begin your journey – Target web users all over the world – particularly North America. Australasia • Google Advertising: – Targets advertisers whose market frequent the internet – Can be targeted with precision at a local or worldwide level .

Loyalty.Google Brand Value • • • • • Household name Verb in Webster‟s dictionary Interbrand Brand of the year. Share of heart .Love. 2003 Quantifying Brand Value Google offerings are largely free – Customer feelings .

Competitive Advantage • Brand image • Infrastructure – servers. storage systems. hardware • Resource abundance • Scalability • Wide knowledge base – Ability to branch off into other areas .

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